With Tower in Chapter 11, Tier 2s are feeling the pain.(Suppliers)(Tower Automotive Inc.)

Automotive News, March, 2005 by Kosdrosky, Terry

Byline: Terry Kosdrosky

Tower Automotive Inc.'s bankruptcy filing is creating a ripple of financial stress among smaller suppliers that are wary of more Chapter 11s from their customers.

Tower, of Novi, Mich., which supplies body structures, owes about $83 million to 16 Detroit-area vendors that are on its list of 30-largest unsecured creditors. Tower filed for Chapter 11 on Feb. 2.

The smallest amount owed to the listed creditors is $2 million. Suppliers on the list include Comau PICO in Southfield, Mich.; Weldmation Inc. in Madison Heights, Mich.; and Trim Trends Co. LLC in Farmington Hills, Mich.

Small suppliers in danger

Another bankruptcy or two from Tier 1 suppliers that provide systems directly to the automakers...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.